Mortgage advice please

ko739

My girlfriend and I are hoping to buy a new build, likely that the house will be ready in May/June time next year but we will need to pay some element of deposit early next year and have a mortgage in principle arranged etc. So I am more in the enquiry/looking for advice stage but definitely plan to proceed early next year if you can help.

We earn combined around 65 k p/a. We plan on having a 15 % deposit, house is expected to be 200k so we would need a 170k mortgage, we have no debt. My partner has a perfect credit record, however I don't. I have perfect credit record for the last two years, however prior to that I had some problems. When through a difficult time in 2010/2011 so made arrangements with 3 creditors (I didnt go via a debt management plan) I just called them explained my situation and asked if I could pay reduced amounts for a while.
This however shows up as arrangements on my accounts over quite a long period. Once I was back on my feet I came of the arrangement and have paid them all off in full. The last AP marker is Aug 2011, everything since then is fine.

Unfortunately I also ended up taking out payday loans pretty consistently across every month from Oct 2010 to Oct 2011 but havent since then.

We both have secure employment over 2 years in the role, both on electoral role.

I guess my question is, based on the above it is even worth looking into a mortgage?

kingstreet

You will need to reserve, make a full mortgage application obtaining a full mortgage offer and pay your deposit at exchange of contracts, normally within twenty-eight days of reservation.

Obtain all three versions of your credit file and discuss with whole market broker. Using HTB - Equity Loan scheme may improve your chances as the loan to value will be lower as a consequence.

ko739

Dont know if i would qualify for htb with my poor credit history.

Not sure if i could get a mortgage at all really. Thats more what i am curious about

Thrugelmir

Who were the ARP's with. May impact on the financial institutions that will even consider you.

ko739

They were with barclaycard and yorkshire bank,one with barclaycard lasted about a year then i went back to normal terms and paid it off,one with yorkshire lasted 3 months and i then paid off

chanz4

Halifax will be best bet then

kingstreet

ko739 wrote: »

Dont know if i would qualify for htb with my poor credit history.

Not sure if i could get a mortgage at all really. Thats more what i am curious about

Credit history is not part of HTB process.

If a lender will give you a mortgage, you qualify for HTB - EL.

ko739

Ok, so just so i understand, i would need to put 5 percent in and the government would put 20 which would mean i would be assessed on a 75 percent mortgage which could give me a better chance? Is it possible for me to put another 10 percent so i would only need 65 percent from a lender? Also i would have thought the lenders uthat you can go via htb would hve v strict criteria? I didnt think with my history i would have a chance

kingstreet

Yes, you could.

See a whole market broker with all three versions of your credit file.